22. Consider a monopolisticallycompetitive market. Despite producing differentiated products,suppose that each existing firm (and any potential entrant) has thesame total cost function, given by TC=2200+100Q+Q2. Anddespite producing differentiated products, suppose that eachexisting firm currently faces the same residual demandcurve, given by Q=(320-P)/4.5 What will happen in the market overthe long run?
     A.Number of firms will increase and residual demand of existing firmswill shift leftward.
     B.Number of firms will decrease and residual demand of remainingfirms will shift rightward.
     C.Number of firms will stay the same and residual demand of existingfirms will not change.
     D.Number of firms will increase and residual demand of existing firmswill shift rightward.
     E.  Number of firms will decrease and residual demand ofremaining firms will shift leftward.
